A single taxpayer sells 3000 shares of section 1244 stock, Ask an Expert

Accounting

A single taxpayer sells 3,000 shares of Section 1244 stock ("small business corporation" stock) at a loss of $125,000. How will this loss be treated on the tax return?

a. $125,000 ordinary loss

b. $125,000 capital loss

c. $50,000 ordinary loss and $75,000 capital loss

d. $100,000 ordinary loss and $25,000 capital loss

e. None of the above

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M938871

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